Did Peloton meet its sales targets during the holiday quarter?

No, Peloton posted worse-than-expected holiday quarter sales, missing both Wall Street's estimates and its own internal sales targets.

How did Peloton's new AI-driven product line perform?

The new AI-driven product line did not perform as hoped, as demand for the revamped assortment was sluggish and failed to significantly boost sales.

What is Peloton's financial outlook for the current quarter?

Peloton forecasts continued sluggish sales for the current quarter and expects revenue between $605 million and $625 million, below analyst expectations.

Home / Business and Economy / Peloton's AI Push Falters: Sales Miss Targets

Peloton's AI Push Falters: Sales Miss Targets

5 Feb

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Summary

Holiday quarter sales missed expectations and internal targets.
New AI-driven product line failed to boost customer demand.
Company forecasts continued sluggish sales in the current quarter.

Peloton's AI Push Falters: Sales Miss Targets

Peloton Interactive Inc. reported a weaker-than-expected holiday quarter ending December 31, with sales falling short of both analyst expectations and the company's internal targets. The launch of its new AI-driven product line, featuring advanced technology like AI-powered cameras and hands-free controls, failed to generate the anticipated surge in demand. Consequently, hardware revenue was $244 million and subscription sales reached $413 million, both below projections.

Despite the disappointing sales figures, Peloton is making strides in improving its profitability. The company generated $81 million in adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter, surpassing analyst expectations of $73 million. Following recent layoffs, Peloton raised its full-year adjusted EBITDA guidance to between $450 million and $500 million, indicating strong operational discipline. The company also announced CFO Liz Coddington's departure, effective in March.